Interpublic Stock Analysis, Valuation (NYSE:IPG)
Watch the robo advisor video of Interpublic stock analysis on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for IPG stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Interpublic Group of Companies Inc Stock Rating 3.1/5
Amigobulls IPG stock analysis uses latest quarter 2018 Q1 financial data like Interpublic revenue growth, profit margins and cash flows. We compare Interpublic valuation with its sector peers to gauge relative attractiveness of IPG stock. Interpublic stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy IPG stock?
- Interpublic's revenue growth came in at 23.7% in 2018-03.
- The company saw a significant growth in revenue with a 5 year CAGR of 3.5.
- Interpublic's average operating margin of 11.84 was exceptional.
- The price to earnings multiple of 16.8 is attractive when compared with the sector average PE ratio of 23.3.
- The lower PS ratio 1.1 for IPG stock versus Business Services sector average of 1.6 is a positive for the company.
- Interpublic generates a high return on invested capital of 13.7.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Interpublic at 26.1.
Should you sell IPG stock?
- Interpublic has a debt/equity ratio of 0.98, which is worse than the average in the -sectordesc- sector.
- The company has negative Free Cash Flows (FCF), with a negative FCF margin of -34.7.
Amigobulls Interpublic stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of IPG stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
Interpublic revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of IPG technical analysis to check whether the fundamental story is reflected in the market sentiment.